Mall Rentals: Delhi's Saket Is Giving Mumbai's Bandra A Run For Its Money

When it comes to prime retail real estate, Mumbai's Bandra and Delhi's Saket have long been in competition for the title of India's most expensive places for commercial rentals. A recent analysis comparing rental prices between 2014 and 2024 for key mall and high-street locations in both cities reveals a substantial rise in rental costs, with Delhi's prime retail spaces, particularly Saket's Select City Walk and Khan Market, now commanding some of the highest rents in the country.

However, Mumbai's iconic locations like Bandra-Khar and Palladium continue to hold their ground., offering a neck to neck comparison of rental growth and market dynamics over the past decade.

Mumbai has long been a hub for retail activity, and certain areas have seen substantial increases in rental values over the last decade.

Malls:
Palladium and High Street Phoenix, located in Lower Parel, have consistently remained among the priciest malls in the city, as per data by ANAROCK.

• In 2014, the average rent for ground-floor carpet space in inline stores at these malls was Rs 400-500 per square foot per month (psfpm).

• By 2024, rents have more than doubled, ranging between Rs 800-1000 psfpm, reflecting Mumbai's growing retail sector and the desirability of these locations.

High Streets:
Bandra-Khar-Santa Cruz, particularly along Linking Road, has been one of the most sought-after high-street retail zones in Mumbai.

• The average rental price for ground-floor inline stores in this area in 2014 was Rs 350-500 psfpm.

• As of 2024, the rent has surged to Rs 900-1200 psfpm, making it one of the most expensive retail corridors in Mumbai.

Delhi has seen similar trends, though some of its high-end locations are now commanding higher rents compared to their Mumbai counterparts.

Malls:
Select City Walk in Saket has been a retail landmark in Delhi, attracting luxury brands and high-end stores.

• In 2014, average rental prices in this mall were Rs 600-700 psfpm.

• As of 2024, rents have skyrocketed, reaching Rs 1300-1500 psfpm, a stark increase that underscores the increasing demand for premium retail spaces in the capital.

High Streets:
Khan Market, already one of Delhi's most famous shopping destinations, has also seen a surge in rents.

• In 2014, the average rent in this high-street area was Rs 600-800 psfpm.

• By 2024, rents have climbed to Rs 1500-1600 psfpm, positioning Khan Market as one of the priciest high-street retail destinations in India.

Looking ahead, rental values across both cities are expected to continue their upward trajectory. As per an analysis by ANAROCK, prominent high-street areas are anticipated to see sustained growth until new quality retail supply enters the market.

• South Extension, Delhi: Rs 800-1000 psfpm

• Linking Road, Mumbai: Rs 815-920 psfpm

This indicates that while both cities are witnessing premium pricing for retail real estate, Delhi’s rental values have shown more dramatic growth in recent years, particularly in mall spaces and high-street areas like Khan Market. Mumbai, however, continues to hold its own with some of the most expensive high-street spaces along Linking Road and within luxury malls like Palladium.